Germany has pledged EUR 23.1 million (USD 24.65m) to South Africa to enhance the development of a green hydrogen economy, as announced by development bank KfW on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ). The funds will be extended to South Africa's state-owned promotional bank, the Industrial Development Corporation (IDC).
Projects benefiting from this financial support will focus on advancing the production and utilization of green hydrogen. Key initiatives include the development of hydrogen-powered lorries and buses for long-haul transport, sustainable aviation fuel production, and the manufacturing of green ammonia for export.
This funding is part of the Just Energy Transition Partnership (JET-P), established at the COP 26 Summit in Glasgow. Germany, along with the European Union and other nations, has committed to providing up to USD 8.5 billion to South Africa over the next three to five years to support the country's green transformation.
The collaboration between Germany and South Africa in the field of green hydrogen has been ongoing. In June, the two countries signed an agreement to expand their partnership, with a focus on various aspects of green hydrogen, including production, processing, utilization, and transport, along with associated synthetic fuels and ammonia.
The renewable energy potential of South Africa has also attracted German companies. Project developer PNE AG, based in Cuxhaven, Germany, is planning a 1-GW green hydrogen project for e-fuels production on the west coast of South Africa.